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The rise of interest-only loans, coupled with acceptable higher debt levels for borrowers and tightened bankruptcy laws will probably soon lead to an increase in foreclosures.
If you are buying a home with an interest only loan and
value of that home drops... it is very easy for
borrower to just walk away from
payments. After all, they've built no equity in
property.
Both
Clinton and Bush administrations have pushed a policy of low interest rates and easy mortgage loan qualifying. If every voter has a home they are happy and will vote for
party in power seems to be
limit of political thought.
The truth may be that
government is setting people up for failure and financial pain. Far to many people are buying homes they really can't afford. When interest rates rise... as they surely will... all those adjustable rate loans will act like debt-traps. Interest rates will go up while wages remain stagnate. The result? More foreclosures and financial ruin for many.
There are international forces at work that will not continue to support our government's wild spending habits by buying its low interest bonds. Interest rates must rise. sooner or later?
Bubble or normal cycle... it makes little difference. If you are an investor consider selling some of your properties to raise cash for
awesome opportunities ahead. You know, buy low - sell high.
In our opinion, there is still profit opportunity if you buy at least 30% below current market value... with owner financing.
Prepare now for
coming wave of preforeclosure opportunity. We recommend
guide to preforeclosure profits you will find here http://digbig.com/4dmff

Mark Walters is an investor-entrepreneur helping other investors from his Web pages at http://www.Lease-Option-Sub2.com